Life & Living Benefits insurance is a cost effective way to fund a shareholders agreement and allow the surviving partners to continue operating the business uninterrupted. In short the business will have the funds to buy out the shares of a critically ill, disabled or deceased shareholders estate.
A shareholders agreement outlines the various rights and obligations of the shareholders to each other. It will also outline how a shareholder can exit the agreement or what will happen in the event of illness or death. The use of life and health insurance to fund these obligations is a common and effective way to manage this risk.
It’s critical for shareholders’ agreements to address the possibility of a disability, illness or death. If nothing is said the wishes of the shareholders could end up being decided by the court.
Our team is based in Vancouver BC and has experience in setting up life and health insurance to fund shareholder agreements and would be happy to work with you and create a tailored solution for you.
